Washington Mutual demanda a la FDIC por 17 billones US$ + daños

http://www.marketwatch.com/story/jp-morgan-swings-to-loss-on-massive-legal-costs-2013-10-11

As of the end of the third quarter, J.P. Morgan Chase said it had a stockpile of $23 billion in total reserves set aside for litigation, a number it hasn't previously disclosed. That includes the $9.15 billion added during the third quarter. A stockpile that large should allow the bank to swallow a number of settlements and payouts, although the company warned of continued "uncertainty" around litigation costs "despite strengthening our reserves to this degree."

"Las autoridades han estado investigando si el banco - que adquirió Bear Stearns y Washington Mutual Inc. durante la crisis financiera - engañó a los inversores sobre la calidad de las hipotecas subyacentes que se han ligado a los valores respaldados por hipotecas emitidos por Bear y WaMu antes de la crisis. JP Morgan se enfrenta ahora a una multa potencial de hasta a $ 11.000 Millones de dólares después fiscal general de EE.UU., Eric Holder, rechazó la oferta del banco de un pago de $ 3.000 millones para poner fin a los cargos penales y civiles."

Y algunos todavía creen que las extensiones de Goldman Sachs no son claros indicios... :)

http://wrbw.membercenter.worldnow.com/story/23635839/susman-godfrey-named-a-most-feared-plaintiffs-firm-by-law360

SOURCE Susman Godfrey LLP

NEW YORK, Oct. 8, 2013 /PRNewswire/ -- Susman Godfrey LLP has been named to Law360's inaugural list of "Most Feared Plaintiffs Firms."

Susman Godfrey was one of just 11 law firms nationwide named to the list recognizing "hugely successful firms that consistently strike fear into the hearts of defense counsel," Law360 wrote.

"Amid fierce competition in the plaintiffs bar, 11 firms stood above the rest in recent years by launching headline-grabbing suits, winning landmark decisions and brokering mammoth settlements," wrote Law360, which selected the winning plaintiffs firms based on the firms' performance in high-profile, complex cases between July 1, 2011 and July 2, 2013.

Susman Godfrey's plaintiff victories during that period included the historic $1.6 billion settlement in the Toyota unintended acceleration class action lawsuit and a $105 million precedent-setting ruling in Assured Guaranty v. Flagstar Bank. As the first case brought by a bond insurer against an issuer of residential mortgage-backed securities (MBS) to go to trial, the case was hailed as a "game changer" and a "turning point in the MBS wars."

Founding Partner Stephen Susman noted that Susman Godfrey was one of the few firms that represents both plaintiffs and defendants to make the "Most Feared Plaintiffs Law Firms" list.

"We believe representing both plaintiffs and defendants keeps us at the top of our game," Susman said. "When defense lawyers see Susman Godfrey attorneys sitting at the plaintiffs' table, they know that we know their defense playbook inside and out."

Susman Godfrey's inclusion on Law360's "Most Feared Plaintiffs Law Firm" list follows its recent recognition on BTI Consulting's "Honor Roll of Most Feared Law Firms" -- part of BTI's annual "Litigation Outlook" report based on more than 300 interviews with general counsel, heads of litigation and other high-level legal decision makers.

About Susman Godfrey LLP
For more than 30 years, Susman Godfrey has focused its nationally recognized practice on just one thing: high-stakes commercial litigation. It is one of the nation's leading law firms, with offices in Houston, Dallas, Seattle, Los Angeles and New York. For more information, visit http://www.susmangodfrey.com/.

http://seekingalpha.com/article/1741952-jpmorgan-should-have-settled

$9.15 Billion - I Wouldn't Even Pay A Lawyer To Defend Me For A Parking Ticket:

Last week, JPMorgan Chase & Co (JPM) reported an astounding $9.15 billion pre-tax legal expense for the most recent quarter, the highest ever. There is nothing wrong with Jamie Dimon defending the company, although there was another option the still employed CEO could have taken - a settlement.

Litigation Costs Do Not Go Towards A Settlement

Of course JPMorgan does not want to settle and face paying a huge bill for their lucrative, although questionable, mortgage bond selling that took place prior to the financial crisis. Even though if the company did conduct meaningful and concluding conversations with the government, a settlement would have been much cheaper than the still ongoing litigation. Keep in mind that the $9.15 billion does not go towards a settlement with the government, it goes into the bank accounts of the law firms representing the giant.

They Should Have Settled

Unconfirmed reports have surfaced that the government is seeking a $20 billion settlement, with more accurate reports putting the number at $11 billion. Yes you called it, JPMorgan could have taken the total amount they paid in legal fees, added $2 billion more and settled. Further, settlements are negotiations between parties, so the company may have had a chance to get off cheaper, around the $9 billion they paid in legal expenses.

Looking forward is where the real burn of the numbers sets in. JPMorgan will not only face higher legal expenses, although they put the amount they will have to pay in jeopardy. Speculating that JPMorgan will face half of what they paid to conclude the litigation with the government, or $4.5 billion, and that the end result would be the same $11 billion number used above, that amounts to a $24.65 billion (9.15 + 11 + 4.5) total for this debacle - roughly $3.2 billion more than the company's profits for 2012. So looking at these numbers, Jamie Dimon could have settled with the government in the $9-$11 billion range and saved the company a ton of money.

http://finance.yahoo.com/news/exclusive-jpmorgan-settlement-complicated-washington-230846252.html

NEW YORK (Reuters) - JPMorgan Chase & Co's possible $11 billion settlement of government mortgage probes has been complicated by a dispute with the Federal Deposit Insurance Corp over responsibility for losses at the former Washington Mutual Inc, said people familiar with the matter.

The dispute, between the largest U.S. bank and the FDIC, could leave the federal agency on the hook for billions the bank is expected to pay as part of the settlement and substantially reduce the amount of the penalty JPMorgan actually pays to the government, some analysts said.
JPMorgan is seeking a "global" settlement of federal and state mortgage-related probes that could involve a payment of $7 billion in cash plus $4 billion for consumers, according to other people familiar with negotiations.

Last week, Chief Executive Jamie Dimon met with U.S. Attorney General Eric Holder to discuss a possible global settlement, and a source said the broad outlines could be reached any day. JPMorgan is also in talks with the U.S. Securities and Exchange Commission, the U.S. Department of Housing and Urban Development and the New York Attorney General's office.
JPMorgan, which acquired Washington Mutual from the FDIC for $1.9 billion at the height of the financial crisis, has disputed its responsibility to cover losses incurred by investors on the failed thrift's mortgage securities.

The bank has said in corporate filings and court proceedings in recent years that its liability is limited when it comes to reimbursing investors who lost money on Washington Mutual mortgage-backed securities.

The FDIC is disputing the matter in court.
Some fear the FDIC, under pressure from the Justice Department to join a global settlement, might agree to assume liability, a move that would effectively force another government agency to absorb billions of dollars in losses.

Spokesmen for both JPMorgan Chase and the FDIC declined comment. A Justice Department spokeswoman was not immediately available for comment.

"If the FDIC were to indemnify JPM as part of the government deal, it would likely reduce the rumored $11 billion by about $3.5 billion," said Joshua Rosner, managing director of Graham Fisher, an independent research consultancy. "That would be an absurd outcome."
An indemnification, Rosner said, would put JPMorgan's losses back on the FDIC, five years' after JPMorgan and the FDIC claimed that the transaction came at no cost to the FDIC.
Rosner estimates that an indemnification deal for JPMorgan would force the FDIC to assume $3.5 billion in claims against JPMorgan by the Federal Housing Finance Agency over Washington Mutual mortgage securities. Sources have said the FHFA claims against Washington Mutual are part of the global settlement negotiations.

John McDonald, a senior analyst at Bernstein Research, said in a research report the issue may be tough to resolve, because the agreement JPMorgan signed with the FDIC when it bought Washington Mutual does not specify which party - JPMorgan or the FDIC - is responsible for Washington Mutual's alleged breaches of representations and warranties in securitization agreements.

The FHFA sued JPMorgan in September 2011, accusing the bank of misleading Fannie Mae and Freddie Mac in their purchase of billions of dollars' worth of risky mortgage securities.
The regulator said JPMorgan falsely represented that the mortgages underlying the securities met underwriting standards. The securities were sponsored or underwritten by the bank, or two other companies it acquired, Bear Stearns Cos and Washington Mutual Bank.
The dispute has played out in a 2009 lawsuit filed by Deutsche Bank National Trust Co. claiming $6 billion to $10 billion in damages from Washington Mutual's alleged breach of representations and warranties in mortgages pooled into securities.
The FDIC has claimed it should be dismissed from the lawsuit and Deutsche Bank's claims should be against JPMorgan.

(Additional reporting by David Henry and Jonathan Stempel; Editing by Bob Burgdorfer)

Se acerca el 1 de noviembre y ya estamos cercanos a los 3$, MrSimpson el día que digas que la acción se hunde, ese día sonara la flauta, increible es que preveas una subida y se venga abajo la acción xD.

Saludos

O estas muy aburrido o tienes fijación... aqui hasta el 12 de Noviembre no sabremos mucho...

Probablemente hasta marzo 2014 un poco más... yo espero una nueva subida... tu dedicate a echar extranjeros a sus paises que se te da muy bien a tenor de lo leido...

Que tonterías dices MrSimpson, pongamos mejor al 2024 para no liarnos, manda narices que las wamuq que recomendabas la oportunidad del siglo a precios de hoy estarían valoradas a 0.05 más o menos, y que sigas vanagloriando, pero bueno, si a tener de todo lo leido en este hilo ya se sabe quien es quien, sólo hay que leer.

Saludos